NZD/USD on a corrective slide near 0.7300 ahead of NZ GDT
- DXY rebound caps the upside.
- A stronger Yuan fix underpins.
- Eyes on NZ GDT price index
The NZD/USD pair kicked-off Tuesday on a bearish note, correcting a part of yesterday’s rally to fresh 4-month tops of 0.7315, as the bulls take a breather ahead of the key NZ GDT price index release.
NZD/USD finds support near 0.7285
The spot failed to sustain above the 0.73 handle and corrected briefly before finding fresh bids near 0.7285 region, after the PBOC set the Yuan reference rate for today at 6.4372, the strongest since Dec-mid 2015. The NZD is used as a liquid proxy for bets on China, as China is New Zealand’s top trading partner.
However, the Kiwi keeps losses as the US dollar stages a minor rebound against its major peers after it fell to more-than three-year lows of 90.05 a day before. Increased expectations of higher global interests rates, suggests that the Fed is not the only central bank to move towards policy normalization this year, which in turn weighed heavily on the buck.
Looking ahead, the major awaits fresh fundamental drivers for the next push higher, with the focus now on Fonterra’s fortnightly dairy auction results due later today while Chinese data dump due later in the second-half this week also keep the investors on the edge.
NZD/USD Technicals
The pair finds next resistances at 0.7315 (4-month tops), at 0.7350 (psychological levels), 0.7391 (classic R3). Meanwhile, the supports are located at 0.7271 (5-DMA), 0.7223 (10-DMA/ zero figure) and 0.7150 (200 & 20-DMA).